Dream Market – Top Dark Web Marketplace Shutting Down
Understanding the Recent Shutdown of Darknet Markets
The question that has arisen frequently in the ongoing discourse about online illicit activities is: why are all the darknet markets down? This unprecedented situation has left many users and enthusiasts of the dark web perplexed and concerned.
Many marketplaces do not last long before they either suddenly shut down – usually performing an exit scam – or are taken offline by law enforcement agencies. In recent years, very popular marketplaces like Dream Market, AlphaBay, Hansa market, or Wall Street Market went offline, but others quickly took their spot as users looked for alternatives. Sometimes new iterations of closed marketplaces showed up again after a while using the same name and sometimes operated by the same individuals as before.
Factors Leading to the Shutdown
The American and European authorities said on Thursday that they had shut down two of the largest online black markets, AlphaBay and Hansa Market, and arrested their operators. White House Market, due to its good reputation among darknet users, will take some traffic from these exits and has the potential to be the next biggest market. However, White House Market’s high security requirements tends to turn the average dark market user away.
They employ various techniques, such as tracking and infiltrating dark markets, developing advanced threat intelligence, and enhancing international cooperation. As darknets and dark markets continue to evolve, understanding their dynamics and implications is crucial for fortifying the cybersecurity defenses of individuals, organizations, and nations in the digital age. In contrast to the differences observed for counterfeit products seized at borders and offered on dark markets, product origins seem to match better across data sources. For example, between 2014 and 2016, seized goods mainly originated from China (55%) and Hong Kong (26.2%) (EUIPO, 2019; OECD/EUIPO, 2019). However, seized goods also originated from the United Arab Emirates (3.8%), Turkey (3.1%), Singapore (2.8%), Thailand (1.4%), India (1%), and other countries (each with less than 1%) (OECD/EUIPO, 2019).
- “The Department of Justice will not allow darknet markets and cryptocurrency to be a safe haven for money laundering and the sale of hacking tools and services,” Deputy Attorney General Lisa Monaco said.
- Darknets, also known as the dark web, comprise a collection of networks and websites that require specific tools and configurations, like Tor, for access.
- Further information on the operation against the Hansa Market can be obtained from Dutch authorities.
- The volume of downed marketplaces prompted DarkOwl’s team to take a closer look, only to discover an underground community as perplexed as we were.
Several factors contribute to the potential shutdown of darknet markets:
- operations targeting illegal online activity.
- Increased regulatory scrutiny and legislative efforts against illegal online transactions.
- Technical issues related to the infrastructure of the markets.
- Market administrators opting for temporary shutdowns to implement security measures.
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We developed a quantitative questionnaire with 21 items indicating trust, based on previous research on the role of trust in surface web and darknet (drug) trade. To test out this measurement tool, we selected a population less likely to purchase illegal drugs offline but more willing to do it online, anonymously, and privately, while its purchase intention is still likely to be reversible. The assessment of this trust metric enables ranking the trust factors and their comparison by relevant independent variables. Findings contribute to strategically planning demand reduction projects and interventions based on a deeper understanding of customers’ risk perception. That way, no physical exchange is made, and unlike with traditional darknet markets, vendors don’t need to risk using the postal system.” Since the demise of Silk Road, numerous markets have emerged on the dark web for transactions of hacked passwords, stolen credit cards, compromised accounts, money laundering and fraud-related services.
Respondents ranked vendor reliability (TF 2) as the second most important trust factor in illegal drug purchasing on the darknet. In addition, most of the respondents would prefer to purchase drugs online than in person. Both findings indicate that the perception of the reliability of markets and vendors determines potential customers’ decisions.
The FBI also released a video containing shots of Dream Market drugs referencing Operation SaboTor. Past large shuttered marketplaces that immediately come to mind include Silk Road 1 & 2, AlphaBay, and Hansa. Aside from the shutdown date, the message also shares that all services will be transferred to an partner with a different address that is set to “open soon.” “We’re going after the users who leverage a service like Genesis Market, and we are doing that on a global scale,” the FBI official said. But amid the scramble for power and wealth, experts have told VICE World News that the huge profits being generated by these platforms are being fuelled by money from gangs involved in increasingly sinister crimes.
Law Enforcement Actions
To facilitate the application, we have created seven categories and classified the trust factors into these categories (see Table Table11). The chart below reveals darknet market revenue and the number of transfers to those markets. The gold line shows that the actual number of individual transfers dropped in 2020, but the orange bars show that 2020 was the first year for darknet market revenue to top $1.5 billion. Chainalysis, which tracks this kind of spending, shared new research breaking down darknet markets and their geographic distinctions in 2020.
One of the primary reasons that can explain why are all the darknet markets down is the surge in law enforcement operations. Authorities worldwide have improved their capabilities to monitor and infiltrate these online platforms, leading to:
- Raids on hosting providers.
- Arrests of key individuals controlling these markets.
- Collaboration among international law enforcement agencies.
Impact of Regulatory Changes
Regulatory changes across the globe are making it increasingly difficult for these markets to operate. Countries are implementing stricter laws regarding:
- Cryptocurrency transactions.
- Online anonymity and privacy.
- Cybercrime mechanisms.
Technical Challenges
The technical infrastructure of darknet markets is inherently vulnerable. Factors such as:
- Server downtime.
- Malicious attacks from competing markets.
- Systematic bugs and vulnerabilities.
can lead to unexpected outages, prompting temporary closures.
Market Dynamics and User Behavior
Market administrators may also opt to shut down operations temporarily to:
- Reassess security protocols.
- Implement changes based on user feedback and market trends.
This approach can serve as a method to maintain market integrity and user trust.
FAQs about Darknet Market Shutdowns
1. Are all darknet markets completely down now?
No, not all are down, but many popular ones have faced significant downtime due to various factors mentioned above.
2. Can these markets come back online?
Yes, many markets cycle through periods of downtime, either for maintenance or due to law enforcement pressure. They could theoretically resume operations.
3. What should users do during this downtime?
It is advisable for users to be cautious and reassess their online behavior, staying informed about ongoing developments in the darknet ecosystem.
4. How can law enforcement track darknet market activities?
Law enforcement agencies employ a combination of advanced technologies, intelligence, and cooperative investigations to monitor darknet activities.
Conclusion
The ongoing circumstances surrounding why are all the darknet markets down highlight a complex interplay of law enforcement efforts, regulatory changes, technical challenges, and market dynamics. As the online landscape continues to evolve, it remains to be seen how these changes will impact the future of darknet markets. For users and observers alike, staying informed and cautious is essential in navigating this shadowy part of the internet.
